If you own a business, you’ve probably heard of outsourcing. These days, companies outsource a lot of non-core functions to save money and improve profit margins.
There is no denying that it’s popular. Since the early 2000s, outsourcing has generated trillions in revenue. However, a curious trend has taken over the industry. In 2014, BPOs generated around $100 million in revenues; in 2015, that number fell to just $80 million. Why has this mammoth industry suddenly lost 20% of its value?
Of course, no one factor can account for such a huge drop, but more and more companies are starting to recognize outsourcing’s limitations as it exists today. Perhaps the biggest issue is geography, which can wreak wide-ranging effects on quality of customer service.
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